The hypothetical transfer of property by an individual or trust, as a result of certain events provided for by law, whereby the individual or trust is considered to have actually disposed of the property.

A deemed disposition can occur if, for example:

• a debt is determined to be a bad debt;
• there is a change in the use of property;
• property is expropriated, damaged, stolen, destroyed, etc.;
• a person leaves Canada;
• a person who owns property dies.